Daily Brief TMT/Internet: ASML Holding NV, JD Industrial Technology , Horizon Robotics, King Yuan Electronics Co, Ltd., Dell Technologies , Dave , Serverworks, Toumei , Acal PLC and more

• ASML reported revenues of €7.5 billion, +19% QoQ and +11.9% YoY. This was €200 million above the high end of the guided range. Q424 guided to €9 billion
• Logic Fab delays and a collapse in sales to China caused ASML to reduce their 2025 forecast to the low end of the €30 -€40 billion guided in November 2022
• Despite these challenges, ASML’s latest forecast still implies 16% YoY growth in 2025

• Comments focus on low bookings in 3Q24. The reset is much larger than this. ASML has capacity for 90 low-NA EUV machines in 2025-26. Demand in 2025 is below 50.
• Bullish 2025-28 guidance (revenue / capacity) provided by ASML end of 2022 is finally resetting. 2025 Consensus Net Income forecast could reset by ~20%, 2026 by ~30%.
• ASML finally factors in 1) weak end demand in all segments except for AI 2) Fab push out or cancellation  3) China accelerated Capex and over capacity are slowing.

• JD Industrial Technology is looking to raise about US$1bn in its upcoming HK IPO.
• JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
• We have looked at the company background and provided our initial thoughts on valuations in our previous notes. In this note, we will talk about the refiling updates.

• Horizon Robotics is looking to raise up to US$696m in its Hong Kong IPO. 
• Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
• We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

• We expect King Yuan Electronics Co, Ltd. (2449 TT)‘s 4Q24 outlook to be a seasonal uptrend with a slight increase quarter-over-quarter.
• NVIDIA Corp (NVDA US) will become the top client at KYEC, and Mediatek Inc (2454 TT) is expected to become the second-largest client in the outlook for 2025.  
• The focus will primarily be on currently available sources, particularly KYEC for production.  

• Hyundai is competing against the US and China in the global autonomous vehicle market, trying to keep up with the latest technological developments.
• Tesla’s new Robotaxi and self-driving bus have been unveiled, but doubts linger about whether they will be commercially successful in the long run.
• TsangYow is planning for growth as Asian markets recover, with a Malaysian plant set to launch in 2027. HK startups are utilizing AI for growth in education and tourism sectors.

• Dave offers financial products to financially challenged Americans, including early wage access loans and digital checking accounts
• Dave faces regulatory challenges in the fintech industry but is still considered a good long-term investment
• The collapse of Synapse and regulatory scrutiny on banking partners like Evolve have raised concerns about the fast growth of fintech companies without proper supervision, highlighted in articles from WSJ and Bloomberg

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Serverworks reported revenue of JPY17.3bn (+38.6% YoY) and operating profit of JPY603mn (+49.6% YoY).
• Resale services revenue reached JPY15.4bn (+40.7% YoY), driven by increased AWS usage and new customer acquisition.
• Cloud Integration revenue was JPY1.1bn (+30.2% YoY), with 280 projects and 136 customers by end-Q2.

• Toumei’s FY08/24 revenue reached JPY23.9bn (+16.5% YoY), with operating profit at JPY2.3bn (+40.3% YoY), achieving record highs.
• For FY08/25, Toumei forecasts revenue of JPY30.0bn (+25.4% YoY) and operating profit of JPY2.9bn (+24.0% YoY).
• Toumei’s NEXT GROWTH 2027 plan targets FY08/27 revenue of JPY40.2bn and operating profit of JPY4.6bn.

discoverIE’s H125 trading update confirmed that underlying earnings expectations for FY25 are unchanged. Destocking by industrial customers reduced in H125, with some now starting to place orders, resulting in a stabilisation in group order intake. Design wins in H125 with an estimated lifetime value (ELV) of £205m provide a strong foundation for future growth once destocking is complete. We maintain our FY25 and FY26 EPS forecasts despite reducing our revenue forecasts to reflect FX headwinds and lower organic growth in H125, reflecting continued good cost control and reducing interest rates.